AI advancement continues to gather pace, with many benefits for businesses. But research has shown that SMEs can be slower on the uptake of using AI in daily operations, with many employees taking it upon themselves to learn more about AI. Nikolaz Foucaud, Managing Director EMEA from Coursera, explains why creating a strong, structured AI policy on skills development is key for SMEs which want to gain a powerful competitive advantage.
2024 has seen another rush of AI advancement, with huge impacts on the business world. Although they can often be slower to adopt new technology, SMEs are slowly tapping into the power of AI, discovering new efficiencies and nurturing innovation in the process.
However, with research from British Chambers of Commerce suggesting that a majority of SMEs are not using AI, there is still great scope for this cohort of companies to catalyse the full potential of AI. Asana research has found that there is a lack of thoughtful and effective training frameworks within SME organisations, holding teams back in terms of AI deployment, confidence and ROI. As a result, more than half (56%) of employees are taking learning into their own hands through personal experimentation with AI. Such impromptu experimentation may lead to innovation and hotspots of increased productivity, but also presents compliance, strategic and procedural risks.
This is why creating a strong, structured AI policy on skills development – one that can match the pace of emerging technology development – is key for SMEs which want to gain a powerful competitive advantage. With this in mind, here are four steps an SME leader can take to strategise effectively around AI.
1) Explore the benefits of AI for your business
AI can herald huge benefits for organisations small to large. Research from the Bank of England highlights that 15% of businesses investing in AI expect a productivity increase within a year, while 48% predict higher productivity within two to three years. These productivity savings are expected to be largely thanks to task automation – for functions like coding or customer service – and process optimisation, in areas like inventory distribution and delivery routes.
With such productivity gains to be had, it’s worth investing time exploring the AI tools available on the market and the benefits they can bring. Leaders should consider questions like: which processes within your business are missing targets, or stagnating? Where are teams facing capacity constraints? Sector-specific AI deployments across Large Language Models (LLMs), chatbots and AI-enhanced CRM can reinvigorate individual corporate functions, such as sales, payroll, customer service and HR.
2) Acknowledge your AI skills gaps
While AI has the potential to revolutionise business functions, research from the BCC found there is still a nervousness about its applications, with a lack of relevant skills proving a blocker. In fact, only 11% of businesses responding to the survey feel their current training arrangements are allowing them to meet their future skills needs. This is creating a negative domino effect, translating into lost possibilities around AI, as four in ten (43%) of firms now have no plans to use AI technology.
To combat this harmful cycle, once you know what tools you are keen to introduce or grow within the business, you should start to connect the skills required for this implementation. Keeping a ‘human in the loop’ is frequently cited as a strategy to mitigate AI risk. Do you need legal acumen to deal with regulatory changes? Do you need technical skills to help with prompt engineering on LLMs?
People will drive the success of AI, and people need skills to thrive. In exploring skills development, avoid keeping this a top-down process. Conduct a comprehensive review of AI skills requests and requirements within your organisation, making sure employees feel seen and heard.
3) Initiate a strategy of skills-based hiring around AI
Gartner research highlights that 55% of organisations have an AI board, but for those smaller companies that need to work economically with resources, hiring based on appropriate skills – rather than on credentials alone – will help with AI readiness. Skills-based hiring can work to attract a wider pool of talent, proving more effective than hiring based on education or work experience, and employers largely back this trend, with almost three-quarters (73%) of employers believing an employee’s willingness to learn is more important than their existing skillset, according to Hays.
Traditionally, degrees have been privileged as the credential of choice for hiring managers, but with university fee cap changes and alternative pathways to career development emerging, hiring based on skills rather than experience and traditional educational qualifications is becoming more popular. Combining a skills-based recruitment strategy with a culture of continuous learning within your company means you will be able to tap into the right talent pool, while also benefitting from agile skills around AI, cybersecurity and data protection knowledge across your team.
4) Create a culture of continuous learning
Asana research highlighted that currently eight in 10 (82%) workers say their organisation hasn’t provided any AI-related training. That an overwhelming majority of employees say that they are missing out on AI learning shows how important it is for you to push for education by example. There can be a temptation to sideline learning as a luxury, but crackdowns on tech in the EU, and new policy landscapes emerging from the UK labour Government means SMEs can’t afford to bury their heads in the sand.
Learning is what will keep organisations informed about ongoing developments and on the right operational path. This is why employers must carve out hours each month for employees to access training, networking and events, providing time to keep up-to-date with the latest regulation and innovation. Only by facilitating learning can any company nurture the conditions necessary for AI success.
It is also sensible to explore emerging AI-ready courses, offered by leading universities and industry players. Coursera has seen a massive uptick in GenAI upskilling with spikes in online course enrolment over the past two years. Coursera’s own platform data highlights that, while there was one GenAI enrolment per minute in 2023, this has risen to six in 2024. Courses like IBM’s Introduction to AI can provide a quick rundown of AI fundamentals and help prepare teams comprehensively for using these tools with success.
The AI challenge ahead for SMEs
Working in a time of rapid technological change means you can’t afford to slack when it comes to AI skilling across your business. Adoption of AI is creating significant competitive advantage, and those that provide employees with the skills needed to harness it stand to derive outsized benefits from the technology.
With further AI developments expected for 2025, keeping upskilling momentum going is critical to handle accelerating technological progress. Essential steps include: auditing skill gaps, consulting with key business functions, exploring and leveraging available resources and adjusting hiring according to skills strategies and needs. SMEs need to make flexible skilling part of their organisation’s DNA – this is not just nice to have, but imperative, especially for teams that offer remote or hybrid working to their employees.